All Free Statistics MCQs with Answers

• A. Regards the base year quantities as fixed
• B. Regards the base year price as fixed
• C. Regards the current year quantities as fixed
• D. non of these

Explanation: The Laspeyres index uses base-year quantities as weights while comparing prices between periods. It therefore keeps the consumption basket fixed at the base-year composition.

• A. To measure changes in quantity
• B. To measure changes in price
• C. To measure changes in a variable over time
• D. To measure changes in demand

Explanation: An index number expresses the relative change in a variable, or group of variables, over time using a reference period. Prices and quantities are common examples, but the broader definition is option c.

• A. Taking A.M. of Laspeyre's and Paasche's index
• B. Taking G.M. of Laspeyre's and Paasche's index
• C. Both (a) and (b)
• D. None of these

Explanation: Fisher's ideal index is the geometric mean of the Laspeyres and Paasche indices: √(L × P). The arithmetic mean is not Fisher's formula.

• A. Laspeyre's index
• B. Paasche's index
• C. Fisher's index
• D. None of these

Explanation: Laspeyres uses base-year quantities, q₀, as weights, so it measures the cost of the base-period basket at current prices. Paasche instead uses current-year quantities as weights.

• A. ∑pn(Po + Pn)/ ∑pn (Po + Pn)
• B. ∑qn(qo + qn)/∑qn(po + pn) x100
• C. ∑pn(qo + qn)/∑pn
• D. ∑qn(Po + Pn)/ ∑qo (Po + Pn) x100

Explanation: The Marshall-Edgeworth volume index uses the average of base- and current-period prices as weights: Σqₙ(p₀+pₙ) divided by Σq₀(p₀+pₙ), multiplied by 100. This corresponds to option d.

• A. Wholesale
• B. Relatives
• C. commodities
• D. Time series

Explanation: Seasonal and cyclical movements are types of variation studied in time series. Index numbers can help reveal these movements after comparisons across periods are made.

• A. Yearly
• B. Basely
• C. Timely
• D. Averagely

Explanation: A weighting system changes with time when the relative importance or consumption pattern of items changes across periods. Thus, “timely” is the intended, though grammatically imperfect, option.

• A. Pn/Po x 100
• B. Pn/Po x 100
• C. Pn/ Pn-1 x100
• D. Pn/P1 x 100

Explanation: A link relative compares the current period with the immediately preceding period, so it is Pₙ/Pₙ₋₁ × 100. Pₙ/P₀ × 100 is a fixed-base relative, not a link relative.

• A. Overall
• B. Same
• C. Variation
• D. Capable

Explanation: An index number condenses the overall change in one or more related variables into a single figure, usually relative to a base period. The other choices do not describe this summarising purpose.

• A. Index Number
• B. Special purpose
• C. Reliable
• D. Scope

Explanation: The objective of constructing an index determines its scope, including the variables, items, population and period covered. A special-purpose index is one possible type, not what the object itself determines.